Arthur J. Gallagher & Co.

NYSE:AJG Stock Report

Market Cap: US$64.2b

Arthur J. Gallagher Valuation

Is AJG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AJG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AJG ($295.88) is trading above our estimate of fair value ($175.54)

Significantly Below Fair Value: AJG is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AJG?

Key metric: As AJG is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AJG. This is calculated by dividing AJG's market cap by their current earnings.
What is AJG's PE Ratio?
PE Ratio55.4x
EarningsUS$1.17b
Market CapUS$64.19b

Price to Earnings Ratio vs Peers

How does AJG's PE Ratio compare to its peers?

The above table shows the PE ratio for AJG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average44.6x
AON Aon
33.7x14.3%US$82.0b
MMC Marsh & McLennan Companies
27.1x7.2%US$108.4b
BRO Brown & Brown
30.2x3.2%US$31.3b
RYAN Ryan Specialty Holdings
87.2x44.5%US$18.4b
AJG Arthur J. Gallagher
55.4x16.4%US$64.2b

Price-To-Earnings vs Peers: AJG is expensive based on its Price-To-Earnings Ratio (55.4x) compared to the peer average (44.6x).

Price to Earnings Ratio vs Industry

How does AJG's PE Ratio compare vs other companies in the US Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$85.49m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
AJG 55.4xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AJG is expensive based on its Price-To-Earnings Ratio (55.4x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is AJG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AJG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio55.4x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: AJG is expensive based on its Price-To-Earnings Ratio (55.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AJG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$295.88
US$293.67
-0.7%
6.7%US$325.00US$250.00n/a17
Nov ’25US$280.40
US$292.44
+4.3%
6.3%US$320.00US$250.00n/a17
Oct ’25US$286.30
US$289.73
+1.2%
5.4%US$312.00US$252.00n/a17
Sep ’25US$292.57
US$285.28
-2.5%
6.1%US$312.00US$252.00n/a16
Aug ’25US$287.12
US$282.90
-1.5%
5.9%US$310.00US$252.00n/a16
Jul ’25US$259.22
US$269.00
+3.8%
5.3%US$294.00US$240.00n/a15
Jun ’25US$253.33
US$266.27
+5.1%
5.2%US$294.00US$240.00n/a15
May ’25US$238.80
US$263.44
+10.3%
5.3%US$282.00US$233.00n/a16
Apr ’25US$247.18
US$258.31
+4.5%
7.7%US$282.00US$205.00n/a16
Mar ’25US$243.54
US$254.49
+4.5%
8.1%US$280.00US$205.00n/a16
Feb ’25US$232.12
US$254.36
+9.6%
8.1%US$280.00US$205.00n/a16
Jan ’25US$224.88
US$256.36
+14.0%
10.1%US$290.00US$187.00n/a16
Dec ’24US$248.00
US$252.80
+1.9%
8.9%US$277.00US$187.00n/a16
Nov ’24US$237.31
US$252.94
+6.6%
8.6%US$277.00US$187.00US$280.4016
Oct ’24US$227.93
US$240.80
+5.6%
7.5%US$265.00US$199.00US$286.3015
Sep ’24US$231.07
US$235.36
+1.9%
6.6%US$255.00US$199.00US$292.5714
Aug ’24US$219.24
US$235.36
+7.4%
6.6%US$255.00US$199.00US$287.1214
Jul ’24US$219.57
US$229.00
+4.3%
8.2%US$247.00US$172.00US$259.2214
Jun ’24US$202.13
US$226.29
+12.0%
8.1%US$247.00US$172.00US$253.3314
May ’24US$210.52
US$223.50
+6.2%
7.8%US$245.00US$172.00US$238.8014
Apr ’24US$191.31
US$217.36
+13.6%
6.7%US$233.00US$176.00US$247.1814
Mar ’24US$187.78
US$217.71
+15.9%
6.7%US$233.00US$176.00US$243.5414
Feb ’24US$196.28
US$217.36
+10.7%
6.7%US$233.00US$176.00US$232.1214
Jan ’24US$188.54
US$207.54
+10.1%
9.8%US$225.00US$144.00US$224.8813
Dec ’23US$199.72
US$201.77
+1.0%
9.4%US$220.00US$144.00US$248.0013
Nov ’23US$187.42
US$201.69
+7.6%
9.3%US$220.00US$144.00US$237.3113

Analyst Forecast: Target price is lower than the current share price.

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